IMF’s Lagarde says nobody wins in a trade war

Trump has since reaffirmed his plans to slap tariffs on steel along with aluminum imports, warning the European Union (EU) the idea could soon face a “big tax” for failing to treat the U.S. properly when the idea comes to trade. He later insisted trade wars are “not bad.”

The IMF’s Lagarde said she hoped Trump could not implement his threat to impose tariffs.

“In a so-called trade war, driven by reciprocal increases of import tariffs, nobody wins, one generally finds losers on both sides,” she said.

Nonetheless, Lagarde also conceded the U.S. president might have a case when the idea comes to the trade situation of the earth’s largest economy.

“There are some countries within the earth of which do not necessarily respect the earth Trade Organization’s agreements, along with which impose technology transfers. China can be a case in point, however the idea can be not the only country with such practices,” Lagarde said while speaking to RTL on Wednesday.